Inflation high but not rising in OECD

Inflation may be high, but at least it’s not getting worse.

Consumer inflation for the OECD countries came in at 10.3% for August, which is essentially flat after a 10.2% reading for July and 10.3% in June.

Headline inflation decreased in almost half (16 of 38) OECD countries, a trend “mainly driven by slower increases in energy prices.”

Annual energy inflation for the OECD declined to 30.2% in August from 35.3% in July.

However, food prices were higher, as was core inflation.

For the G7 countries, annual inflation was generally flat in August at 7.5%, the report showed.

“Headline inflation declined in Canada, France, the U.K. and the U.S., driven by a slowdown in energy prices, while it rose in Germany, Italy and Japan,” the OECD said.

Core inflation (excluding food and energy) was the main driver of headline inflation in Canada, the U.K. and the U.S., it noted, whereas food and energy prices powered headline inflation in France, Germany, Italy and Japan.

Additionally, the OECD reported that annual inflation for the G20 was also stable at 9.2% for the third straight month in August.

Staff

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